Baylake Corp., holding company for Baylake Bank, announced results for the first quarter ended March 31, 2015. Net income was $2.21 million, EPS $0.24, up 7% compared to $2.07 million or EPS $0.23 in Q1 2014.
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Return on average assets (ROAA) in the first quarter of 2015 was 0.90% compared to 0.88% in the first quarter of 2014.
Return on average equity (ROAE) for the three months ended March 31, 2015 was 8.39% compared to 8.87% for the three months ended March 31, 2014.
The reduction in ROAE reflected an increase in total shares outstanding to 9.13 million at March 31, 2015 compared to 7.73 million at March 31, 2014 as the company converted $7.75 million in subordinated debentures into 1.56 million shares during 2014 and $0.58 million into 0.12 million shares in the first quarter of 2015.
Total stockholders' equity increased to $107.35 million at March 31, 2015, up from $94.59 million at March 31, 2014 and $105.5 million at December 31, 2014. Shareholders' equity-to-assets ratio increased to 10.87% at March 31, 2015 from 9.69% as of the same date in 2014.
Total gross loans outstanding at March 31, 2015 increased to $672.27 million, up 6% compared to total gross loans of $633.18 million at March 31, 2014.
Total deposits were $761.45 million at March 31, 2015, up 6% compared to $721.31 million at March 31, 2014. Growth in core deposits used to fund lending enabled the company to reduce wholesale borrowings by 19% compared to the balance of such borrowings at March 31, 2014.
Net interest income after provision for loan losses increased to $7.76 million for the first quarter of 2015 compared to $7.59 million for the first quarter of 2014, reflecting both total interest income growth and a 26% reduction in total interest expense when compared to the first quarter of 2014.
Non-interest income in the first quarter of 2015 rose 19% from the prior year's first quarter, primarily reflecting growth in fee income from the company's wealth management and investment advisory business, increased gains on sale of securities, increased gains from sales of loans, increased fees generated by deposits, and 8% income growth from the company's equity stake in United Financial Services (UFS), a data processing and e-banking entity.
Total assets declined to $987.87 million at March 31, 2015 from $1.02 billion at December 31, 2014. The $33.75 million decline resulted from a reduction of borrowings, including the repayment of $16.80 million of FHLB advances during the first quarter of 2015.
Continued focus on asset quality and risk management resulted in a decline of the company's ratio of non-performing loans to total loans to 0.85% at March 31, 2015 compared to 1.10% at March 31, 2014. ■